Turkey’s Sovereign Ratings Affirmed
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Summary
Ref: TR19CRA00-1 24 th May 2019
Turkey’s Sovereign Ratings Affirmed
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency, today announced that it has affirmed Turkey’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) at ‘BB-’. CI Ratings has also affirmed the sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) at ‘B’. The Outlook for all ratings remains Negative.
RATING RATIONALE
The ratings and Negative Outlook reflect CI’s opinion that despite the relative easing of external financing pressures since late 2018, Turkey continues to be exposed to substantial downside risks. In particular, CI regards the ongoing sharp slowdown in economic growth, continued large external debt rollover needs of banks and non-financial corporates, and elevated financial stability risks in the domestic…